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Group 1: Company Performance - Lowe's shares increased by 4.7% to $256.33 in the last trading session, with a notable trading volume, and have gained 13.9% over the past four weeks [1] - The company is expected to report quarterly earnings of $4.24 per share, reflecting a year-over-year increase of 3.4%, with revenues projected at $24.01 billion, up 1.8% from the previous year [3] - The consensus EPS estimate for Lowe's has been revised 1.4% lower in the last 30 days, indicating a negative trend in earnings estimate revisions [4] Group 2: Strategic Focus and Growth Prospects - Lowe's strategic focus on the Pro customer segment includes enhanced product availability, timely delivery, and a broader assortment supported by a rewards program, which underpins long-term growth prospects [2] - The company's expansion plans, acquisition of ADG, and emphasis on superior customer experiences strengthen its position as a leading omnichannel retailer [2] - Ongoing investments in service enhancements, operational efficiency, and AI-driven shopping solutions are expected to bolster customer engagement and sustain demand momentum [2] Group 3: Industry Comparison - Lowe's is part of the Zacks Retail - Home Furnishings industry, where Home Depot also operates, finishing the last trading session 2.8% higher at $407.18, with a 10.4% return over the past month [4] - Home Depot's consensus EPS estimate has changed by -0.1% over the past month to $4.71, representing a year-over-year change of +0.9% [5]

Group 1 - The core viewpoint of the article highlights that Lowe's (LOW) stock experienced a 5.01% increase, reaching $257.14 per share, with a total market capitalization of $144.11 billion as of August 14 [1] - Financial data indicates that Lowe's total revenue for the period ending May 2, 2025, is projected to be $20.93 billion, reflecting a year-over-year decrease of 2.03%, while the net profit attributable to shareholders is expected to be $1.641 billion, down 6.5% year-over-year [1] - Lowe's is recognized as one of the top 50 home improvement companies by Fortune magazine and serves over 19 million customers weekly across the United States, Canada, and Mexico [2] Group 2 - A significant event reminder is that Lowe's is scheduled to release its fiscal year 2025 mid-term report on August 20, prior to market opening [2] - The company focuses on supporting its communities through K-12 public education and community improvement projects [2]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Lowe's, with a focus on how actual results compare to estimates impacting stock price [1][2]. Company Summary - Lowe's is expected to report quarterly earnings of $4.24 per share, reflecting a year-over-year increase of +3.4% [3]. - Revenue is projected to be $24.01 billion, which is an increase of 1.8% from the same quarter last year [3]. - The consensus EPS estimate has been revised down by 1.36% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Lowe's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.56%, suggesting a bearish outlook from analysts [12]. - Despite the negative Earnings ESP, Lowe's holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Lowe's exceeded the expected earnings of $2.88 per share by delivering $2.92, resulting in a surprise of +1.39% [13]. - Over the past four quarters, Lowe's has consistently beaten consensus EPS estimates [14]. Industry Comparison - In the Zacks Retail - Home Furnishings industry, Home Depot is expected to report earnings of $4.71 per share, with a year-over-year change of +0.9% and revenues of $45.51 billion, up 5.4% from the previous year [18]. - Home Depot's consensus EPS estimate has been revised down by 0.1% over the last 30 days, but it has a positive Earnings ESP of +0.34%, indicating a higher likelihood of beating the consensus EPS estimate [19].

Core Viewpoint - Lowe's Companies, Inc. is set to report its second-quarter fiscal 2025 earnings on August 20, with expectations for revenue of $24.02 billion, reflecting a 1.9% year-over-year growth, and earnings per share (EPS) of $4.24, indicating a 3.4% increase from the previous year [1][9]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for Lowe's revenues stands at $24.02 billion, implying a 1.9% growth from the prior year [1][9]. - The consensus mark for earnings has decreased by a penny to $4.24 per share, still suggesting a 3.4% increase from the year-ago period [1][9]. - Lowe's has a trailing four-quarter earnings surprise of 3.2%, with the last reported quarter outperforming the Zacks Consensus Estimate by 1.4% [2]. Group 2: Key Growth Drivers - Key factors expected to drive Lowe's second-quarter results include product innovation, the MyLowe's Rewards program, digital expansion, and resilient demand from professional customers [3]. - The acquisition of Artisan Design Group is anticipated to enhance Lowe's reach in design, distribution, and installation for new home construction and large-scale renovations [3]. - Digital growth is a significant contributor, with online sales momentum expected to continue benefiting from the home improvement marketplace powered by Mirakl [4]. Group 3: Customer Experience Enhancements - The rollout of Mylow, an AI-powered virtual home improvement advisor, along with Mylow Companion for associates, is designed to enhance customer experience and improve sales processes [5]. - These tools provide project guidance and product recommendations, which are expected to improve conversion rates and encourage repeat visits [5]. Group 4: Market Conditions and Challenges - Ongoing weakness in DIY big-ticket discretionary categories, such as flooring and kitchens, is a concern due to higher mortgage rates and affordability challenges [7]. - Rising wage and healthcare costs may pressure selling, general, and administrative (SG&A) expenses [7]. - Despite diversifying sourcing, a significant portion of Lowe's purchases still comes from China, exposing the company to potential tariff impacts [7]. Group 5: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Lowe's this quarter, as it has a Zacks Rank of 3 and an Earnings ESP of -0.56% [8][10].

Where: Visit the Quarterly Earnings section of the Lowe's Investor Relations website, ir.lowes.com. How: Listen live online and view the supplemental materials by following the directions above. What: Second Quarter 2025 Earnings Conference Call When: 9 a.m. ET on Wednesday, Aug. 20 A webcast replay of the call can be accessed from noon ET on Aug. 20, 2025 through Aug. 19, 2026 by visiting Events & Presentations on Lowe's Investor Relations website and clicking on Q2 2025 Lowe's Companies, Inc. Earnings Con ...

Core Insights - Home Depot and Lowe's are the leading companies in the U.S. home improvement retail sector, each pursuing different strategies in a challenging market characterized by high interest rates and selective consumer spending [1][2] Home Depot (HD) - Home Depot is focusing on leveraging its scale, supply-chain strength, and relationships with Pro customers to maintain market share [1] - The acquisition of SRS Distribution enhances Home Depot's Pro segment by adding complementary verticals and improving its trade credit program, which is vital for attracting large-scale Pro clients [3] - Investment in technology has improved delivery speed and customer engagement through an interconnected retail model, with AI tools enhancing store operations [4] - Home Depot's supply-chain diversification strategy reduces reliance on any single country, with over half of purchases sourced domestically, mitigating geopolitical risks [5] - Challenges include rising costs affecting margins, soft demand for big-ticket remodels due to high interest rates, and increased inventory levels [6] Lowe's (LOW) - Lowe's is strengthening its position in the Pro customer segment, with Pro sales increasing in the mid-single digits, supported by the MyLowe's Pro Rewards program [7] - The acquisition of Artisan Design Group positions Lowe's to tap into a fragmented $50 billion market and address the demand for new homes in the U.S. [8] - Lowe's is pursuing growth initiatives such as rural market expansion and new store openings, focusing on Pro sales and online growth through technology investments [9] - Online sales increased by 6% year-over-year, driven by higher traffic and improved conversion rates, with the launch of a home improvement product marketplace expanding offerings [10] - Operational efficiency initiatives have improved gross margins, but softness in big-ticket DIY categories remains a challenge, with comparable sales down 1.7% in the first quarter [11][12] Comparative Analysis - Home Depot's fiscal 2025 sales and EPS estimates suggest year-over-year growth of 3.1% and a decline of 1.4%, respectively [13] - Lowe's fiscal 2025 sales and EPS estimates indicate growth of 0.8% and 2.4%, respectively [14] - Home Depot's stock has gained 12.2% over the past year, outperforming Lowe's, which has risen 4.4% [16] - Home Depot trades at a forward price-to-sales (P/S) multiple of 2.29, while Lowe's is at 1.57, indicating Home Depot is priced higher [18] - The competitive edge currently favors Home Depot due to its scale, Pro relationships, and strategic acquisitions, while Lowe's faces challenges from macro-sensitive DIY categories and tariff risks [20]

Company Overview - Lowe's (LOW) is a home improvement retailer headquartered in Mooresville, experiencing a price change of -3.45% year-to-date [3] - The company currently pays a dividend of $1.20 per share, resulting in a dividend yield of 2.01%, which is higher than the Retail - Home Furnishings industry's yield of 1.12% and the S&P 500's yield of 1.52% [3] Dividend Analysis - Lowe's annualized dividend of $4.80 has increased by 5.5% from the previous year [4] - Over the past five years, Lowe's has raised its dividend five times, averaging an annual increase of 17.45% [4] - The current payout ratio for Lowe's is 39%, indicating that the company distributes 39% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Lowe's earnings in 2025 is $12.29 per share, reflecting an expected increase of 2.42% from the previous year [5] - The company is viewed as a strong dividend option due to its solid earnings growth prospects [6] Investment Considerations - Established firms like Lowe's are often considered favorable for dividend investments, although high-growth companies typically do not offer dividends [6] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating a compelling investment opportunity for income investors [6]

Core Viewpoint - The home improvement industry is a significant segment of the retail sector, valued at $1 trillion, with Home Depot and Lowe's as the leading competitors [1][2]. Company Analysis - Home Depot and Lowe's are both profitable companies that return substantial capital to shareholders, making them attractive options for investors seeking exposure to the home improvement market [2]. - Home Depot derives 50% of its revenue from professional customers, while Lowe's only captures 30% from this segment, giving Home Depot a competitive advantage [6]. - Home Depot's trailing-12-month revenue stands at $163 billion, nearly double Lowe's $83 billion, indicating a stronger market position [11]. - Lowe's is actively working to close the gap with Home Depot by enhancing its pro division and improving customer loyalty programs [12]. Market Conditions - The home improvement sector is currently facing challenges due to higher interest rates affecting the housing market, leading to reduced spending on large purchases [4]. - Despite current struggles, the long-term outlook remains positive due to factors such as the aging housing stock in the U.S., which will require more maintenance and renovations [8]. - There is a significant supply and demand imbalance in the housing market, with millions of homes in inventory shortage, which may lead homeowners to invest in renovations rather than purchasing new homes [9]. - The increase in home prices over the past five years has created trillions of dollars in untapped equity, suggesting potential pent-up demand for home improvement products once macro conditions improve [10]. Valuation Comparison - As of July 28, Lowe's shares are trading at a price-to-earnings ratio of 19.1, which is a 25% discount compared to Home Depot's 25.6 multiple, indicating a potential for better returns from Lowe's in the next five years [13].

Group 1 - The last coverage of Lowe's Companies (NYSE: LOW) stock was in August 2024, focusing on its Q2 2024 earnings and rating the stock as a buy [1] - The core investment style emphasizes providing actionable and clear ideas from independent research [1] Group 2 - The service has helped members outperform the S&P 500 and avoid significant drawdowns during periods of extreme market volatility [2] - A trial membership is available to assess the effectiveness of the proven investment method [2]